I imagine this is going to be a lot worse now with unicorn craze. It seems like to some, any liquidation terms were acceptable to get to the $1b valuation mark.
Indeed. Smart, young companies are refusing preferred share investments and are willing to keep their valuation lower because of that. It's true that you're selling a larger portion of your future for less money in many ways, but you protect the founders and original investors as well as the employees too.
Huge growth is important but it's also important to be smart about it. Selling a part of your company for a bit less if often better than mortgaging the common shares.
